July 19, 2013Page 2The November 28 No-Action Relief expired on April 1, 2013. Most recently,
on June 21,2013, the Division granted time-limited no-
action relief (“June
Action Relief”) t
hat wassubstantially similar to the November 28 No-Action Relief.
The June 21 No-Action Relief willexpire on July 19, 2013. Without further action by the Division or the Commission, after July 19,2013, all cooperatives that are Category 2 Entities, as defined in the Swap Transaction Complianceand Implementation Schedule,
that are not able to claim an exception, exemption, or other relief from required
clearing pursuant to section 2(h)(7) of the CEA or part 50 of the Commission’s
regulations, will be required to clear swaps subject to the clearing requirement in § 50.4 of the
In view of the foregoing, the Division is extending the relief provided in the June 21 No-Action Relief until August 16, 2013. Accordingly, the Division will not recommend that theCommission commence an enforcement action against a person for failure to comply with the
requirement under section 2(h)(1)(A) of the CEA and part 50 of the Commission’s regulation to
clear a CDS or interest rate swa
p subject to required clearing in § 50.4 of the Commission’s
regulations, provided that the following conditions are met:1.
One of the counterparties is an “exempt cooperative,” which, for
purposes of the no-action relief, means a cooperative:(a) That is formed and existing pursuant to Federal or state law as acooperative;
The Division also granted time-limited no-action relief that was substantially similar to the November 28 No-ActionRelief on June 7, 2013, which expired on June 21, 2013.
Staff No-Action Letter 13-24, available athttp://www.cftc.gov/LawRegulation/CFTCStaffLetters/13-24.
Staff No-Action Letter 13-30, available at http://www.cftc.gov/LawRegulation/CFTCStaffLetters/13-30.
Swap Transaction Compliance and Implementation Schedule: Clearing Requirement Under Section 2(h) of theCEA, 77 FR 44441 (July 30, 2012).
Pursuant to the compliance schedule, swap dealers major swap participants and private funds active in the swapsmarket were required to comply with the
clearing requirement starting on March 11, 2013 (“Category 1 Entities”).
Accounts managed by third-party investment managers, as well as ERISA pension plans, have until September 9,2013, to begin clearing swaps entered into on or after that date
(“Category 3 Entities”)
. All other financial entitieswere required to clear swaps beginning on June 10, 2013, for swaps entered into on or after that date
Clearing Requirement Determination, 77 FR at 74319-21. With regard to the CDS indices onEuropean corporate names, iTraxx, the Clearing Requirement Determination provided that, if no DCO offered iTraxxfor client clearing by February 11, 2013, the Commission would delay compliance for those swaps until 60 days after an eligible DCO offers iTraxx indices for client clearing. On February 25, 2013, the Commission received notice fromICE Clear Credit LLC, a Commission-registered DCO, that it had begun offering customer clearing of the iTraxx CDSindices that are subject to the clearing requirement in § 50.4(b)
of the Commission’s regulations
. In accordance withthe timeframe previously set forth by the Commission, the following compliance dates apply to the clearing of iTraxxindices: Category 1 Entities: Friday, April 26, 2013; Category 2 Entities: Thursday, July 25, 2013; and Category 3Entities: Wednesday, October 23, 2013.
Press Release, CFTC’s Division of Clearing and Risk Announces
Revised Compliance Schedule for Required Clearing of iTraxx CDS Indices (Feb. 25, 2013), available athttp://www.cftc.gov/PressRoom/PressReleases/pr6521-13.